Legal

THE DAILY FANTASY SPORTS INDUSTRY

In the past few years daily fantasy sports have exploded in popularity. According to a 2014 study conducted by the Fantasy Sports Trade Association, there are over 41 million people in the USA and Canada who play fantasy sports, with numbers growing daily. It is gaining recognition as one of the fastest growing industries -- major companies are becoming investors and professional sports leagues like the NFL, NBA, NHL, and MLB are openly supporting and forming partnerships with the fantasy sports industry.

The legality of fantasy sports has been addressed by the US federal government, which carved out an exemption for fantasy sports in the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) which was designed to prevent online gambling. According to the UIGEA, so long as fantasy sports games meet three criteria,[1] it is a game of skill and not gambling. DraftFury takes the legality of its games very seriously and strictly follows the criteria set out by the UIGEA when designing its daily fantasy contests.

DraftFury has also analyzed the various state gambling laws to determine if fantasy sports contests are legal in those states. The majority of states classify fantasy sports as games of skill and not gambling. There are a few gray-area states where the law is unclear or questionable about the legality of fantasy sports. DraftFury’s legal team has advised that at this time residents of Arizona, Iowa, Louisiana, Montana, Nevada, and Washington be allowed to participate in free entry contests, but not paid entry contests. There is a strong trend of officially legalizing fantasy sports across all 50 states. DraftFury stays up-to-date on legal developments in the fantasy sports industry and will change its contest rules as the laws change.

All prizes and awards offered to winning participants are established and made known to the participants in advance of the game or contest and their value is not determined by the number of participants or the amount of any fees paid by participants.

All winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals (athletes in the case of sports events) in multiple real-world sporting or other events.

No winning outcome is based: (a) On the score, point spread, or any performance or performances of any single real world team or any combination of such teams; or (b) Solely on any single performance of an individual athlete in any single real-world sporting or other event.

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